A multi-million tea estate owned by billionaire David Langat is set to be auctioned at the end of this month.
The development comes after an auctioneer notice that was released by Graham Auctioneers.
Revealing their plans, the auctioneers stated that they sell off the expansive tea estate located in Nandi County, as well as a prime property in Mombasa used by DL Group for tea handling and packaging.
Spanning an impressive 1,342 acres, the DL Koisagat Tea Estate boasts an exclusive tea zone dedicated to export-oriented commercial tea cultivation.
The estate is adorned with approximately 2.47 million tea bushes sprawling across 958.75 acres, along with 100,942 eucalyptus trees and 2,223 cypress trees.
“Other portions of the tea estate are under residential use (managerial houses and labour camps). Woodlots are periodically harvested to provide wood fuel to the tea processing.” Part of the auctioneers statement read.
Apart from the tea operations, the estate is equipped with public amenities such as a hospital and the Koisagat Primary School.
The notice further stated that the Langat’s Mombasa property is located in a prime area, off Moi Avenue in the coastal town.
“The subject property comprises a 0.7-acre plot developed with a four- storey office block and five go- downs,” the notice by Garam Auctioneers stated.
These structures have been utilized for various purposes, including the processing and packaging of tea products.
The decision to auction these assets deals a significant blow to DL Group, one of the major producers of black tea in Kenya and Tanzania.
In addition to its own tea farm, the company purchases tea from numerous neighboring farmers in Nandi County, further contributing to the local tea industry.
DL Group’s stature in the region is further evident through its tea supply to Tetley UK, a renowned global tea company.
In 2018, the company acquired three companies from the British firm Rift Valley Corporation for an estimated price of Ksh. 6billion.
This acquisition elevated DL Group’s position as one of the leading tea producers in Tanzania, with a 99 percent stake in Mufindi Tea and Coffee Ltd, Rift Valley Tea Solutions Ltd, and Kibena Tea Ltd.
Moreover, DL Group has diversified its business ventures, including recent forays into the energy sector.
The company developed the Selenkei and Cedate solar power plants in Eldoret, each with a capacity to produce 40 megawatts of power.
